Finance Committee Approves Revenue Increases, Decreases

The Connecticut legislature’s Finance Committee voted out a package this week that supports the Appropriations Committee’s $19.9 billion spending plan with about $10 million in additional revenues.
The committee vote on HB 5046 was 30-21, with Democrats supporting and Republicans opposing.
The Finance package included a balance of revenue increases and decreases as the committee attempted to approve a revenue-neutral plan.
They voted to move the cap on research and development tax credits back up to 70% of a company’s total tax liability.
And among the other decreases is the elimination of the sales tax on ambulatory surgical care services, and a repeal of the sales tax on coin operated car washes.
The plan also eliminates the state admissions tax on tickets to concerts and sporting events.
On the other hand there were some tax and fee increases.

Changes include a new tax on fantasy sports games, a delay an income tax cut for retired teachers, and a sweep of $20 million in electricity ratepayer funds from a program reserved to address environmental protection programs.
One fee increase of concern was the Finance plan to impose a new fee on retail businesses on their collection of sales taxes.
The fee, to be assessed on a sliding scale dependent on the amount of sales tax collected, will range from $50 to $350.
The package will continue to be negotiated among legislators and the Governor as it makes its way through the legislative session that adjourns on May 4.

---

For more information about state spending, contact CBIA’s Louise DiCocco (203.589.6515) | @LouiseDiCocco
For more information about state taxes, contact CBIA’s Bonnie Stewart (860.944.8788) | @CBIAbonnie